Impact of Artificial Intelligence on Corporate Governance: Legal and Ethical Dimensions

The rise of Artificial Intelligence (AI) has brought profound changes to the way companies operate and govern themselves. From boardroom decisions to stakeholder communication, AI is now embedded in critical areas of corporate governance. This paper explores how AI is shaping these governance functions, offering advantages like efficiency, transparency, and improved compliance. However, these benefits come with legal uncertainties and ethical concerns—ranging from data privacy risks to a lack of accountability in AI-driven decisions. By focusing on developments in India and comparing them with international approaches, the study identifies key regulatory gaps and ethical dilemmas. It argues for updating existing governance frameworks to ensure that AI is used responsibly and in alignment with stakeholder expectations. The paper concludes by recommending legal reforms and ethical practices aimed at balancing innovation with accountability in the AI era.